How Much Down Payment Do You Need?

Most people think they need a 20% down payment to buy a home. But did you know that more than 70% of the majority of first-time homebuyers put down less than that?

Many lenders offer conventional mortgages with as little as 3% down. But with a smaller down payment, you’ll likely face a higher interest rate and you’ll have to pay Private Mortgage Insurance, or PMI. Some lenders, like Laurel Road, also have special mortgage products for qualified doctors that don’t require any down payment and let you skip the PMI.

There are also government-backed loans from the FHA, USDA and VA that let qualified buyers pay a smaller down payment or skip it all together. The bottom line is you should be able to get a mortgage if you don’t have 20% down—it may just cost you a little more over the life of your loan.

For more information on this topic, go to LaurelRoad.com.